Verified GFMC &As – Provide GFMC with Correct Answers [Q33-Q52]

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Verified GFMC Exam Dumps Q&As – Provide GFMC with Correct Answers

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AGA GFMC Exam Syllabus Topics:

Topic	Details
Topic 1	Performance Measurement Metrics Service Efforts and Accomplishments: This section of the exam measures the ability of program managers and strategic planners to align performance indicators with organizational outcomes. It covers the integration of financial and non-financial metrics with strategic goals, the importance of transparency and accountability, and how performance data informs budgetary decisions. Candidates must understand stakeholder engagement, baseline setting, legal compliance, and benchmark creation.
Topic 2	Financial and Managerial Analysis Techniques: This section of the exam measures the skills of budget analysts and financial managers in using quantitative tools and data to assess financial decisions. It includes techniques like trend and ratio analysis, forecasting, regression, and data analytics. It also tests understanding of data sources, reliability, and how forensic auditing can be used for deeper insight into financial activities.
Topic 3	Internal Control: This section of the exam measures the capabilities of compliance officers and internal auditors in implementing and evaluating internal control systems. It includes knowledge of COSO frameworks, OMB standards, and audit procedures aimed at fraud prevention and legal compliance. Candidates must understand roles and responsibilities related to internal control, risk assessment, reporting mechanisms, and enterprise risk management frameworks.
Topic 4	Auditing: This section of the exam measures the auditing knowledge of financial controllers and government auditors. It focuses on audit standards, types of audits, the audit process, and the responsibilities of both auditors and auditees. Key topics include audit preparation, follow-up, independence, materiality, and the scope of the Single Audit Act. Candidates are also expected to be familiar with fieldwork, reporting, and confidentiality concerns relevant to public sector audits.
Topic 5	Financial Management Functions: This section of the exam measures the competencies of public sector finance officers and treasury analysts in managing financial operations in government environments. It covers essential areas such as cash flow practices, investment strategy, debt recovery, and procurement processes. Candidates are expected to understand property and inventory systems, evaluate IT-based financial systems, and apply emerging technologies. Shared services and project management principles are also included as foundational knowledge areas.

NEW QUESTION 33
If a CGFM wants to utilize data on population growth, housing and employment to estimate sales tax revenue, the CGFM should use

a regression analysis.

a cash flow analysis.

a payback analysis.

flow charting.

NEW QUESTION 34
Entity management’s appointment of a senior official to ensure the resolution of audit recommendations is a demonstration of management’s

agreement with the audit findings.

disagreement with the audit findings.

delegation of authority.

support for the audit process.

NEW QUESTION 35
According to the GAO, internal control is a process used by management to

help an entity achieve its objectives.

design an ERM system.

set the tone at the top.

develop a strategic plan.

NEW QUESTION 36
Management’s need for real-time access to data is facilitated when

data is represented visually and includes information that indirectly relates to the subject matter.

data supporting dashboards are updated every quarter.

the prior year’s financial statement data underlies the management reports used to decide on future expenditures.

complex data sets are available on demand, presented with minimal distractions.

NEW QUESTION 37
To support optimal cash management vendor payment procedures, invoices with discount terms should be paid

after the due date to increase cash flow.

prior to the due date to improve credit rating.

on the due date, unless a charge is assessed for late payment.

on the discount date.

NEW QUESTION 38
Management shoulg consider the cost of internal controls in relationship to

the available budget.

inherent risks.

benefits provided.

risk of collusion.

NEW QUESTION 39
An agency benefit program allows employees who commute by public transit up to 10 free taxi trips home per calendar year. Employees can use the program for personal or family health emergencies. The most appropriate method to check for abuse of this program is

using program data to look for instances of individuals using the service more than 10 times per year.

using geographic information system data to determine if the destination addresses were hospitals or clinics.

using personal data to determine if the destination address matches the employees home address.

requesting records from a random sample of employees to verify they used transit on the day they used the taxi services.

NEW QUESTION 40
The basic steps in fraud audits include all of the following EXCEPT

consulting legal counsel.

reporting the results.

follow-up on control weaknesses.

considering political ramifications.

NEW QUESTION 41
An analyst has identified several variables that may be impacting state lottery ticket sales, including investments in advertising, potential pay-out amounts and the size of lottery cards. Which of the following techniques would help determine the extent to which each variable is impacting sales?

content analysis

cost-benefit analysis

regression analysis

narrative analysis

NEW QUESTION 42
Based on the data below, what can be concluded about outsourcing print job?

It is better to keep the printing in-house.

Outsourcing printing is feasible.

Outsourcing printing is necessary.

ABC Printing should be awarded the outsourcing contract.

* Understanding the Scenario:The table compares the costs of four printing jobs performed by an
“Internal Print Shop” versus three external vendors (Ace Printing, ABC Printing, and Printing, Inc.).
Each vendor’s pricing varies by print job type. The task is to evaluate whether outsourcing (hiring external vendors) is a reasonable alternative to keeping the work in-house.
* Key Considerations in Outsourcing:According to governmental accounting principles and budgeting practices outlined by theAssociation of Government Accountants (AGA), the decision to outsource should consider:
* Cost-effectiveness: Does outsourcing reduce costs without compromising quality or service delivery?
* Operational efficiency: Can outsourcing free up internal resources for other priorities?
* Comparative pricing: How do external vendor rates compare to internal costs for identical services?
* Analysis of the Print Jobs:Let’s break down the cost comparison for each print job:
* Zone Map:Internal cost = $4.23.Cheapest vendor = Printing, Inc., at $4.00.Outsourcing is cheaper for this job.
* Agenda Packet:Internal cost = $23.18.Cheapest vendor = Printing, Inc., at $22.00.Outsourcing is cheaper for this job.
* Budget Cover:Internal cost = $840.00.Cheapest vendor = ABC Printing, at $624.30.Outsourcing is significantly cheaper for this job.
* Employee Benefit Brochure:Internal cost = $6.14.Cheapest vendor = ABC Printing, at $4.90.
Outsourcing is cheaper for this job.
* Conclusion Based on Analysis:
* Across all four print jobs, the lowest-cost external vendor always beats the Internal Print Shop’s costs.
* From abudgetary perspective, outsourcing is feasible as it offers cost savings across all jobs.
* Why Not A, C, or D?:
* Option A(Keep printing in-house): Incorrect, as in-house costs are consistently higher than the cheapest external vendor.
* Option C(Outsourcing is necessary): Incorrect, as feasibility doesn’t mean necessity; internal printing is still an option if other factors (like quality or control) outweigh costs.
* Option D(Award contract to ABC Printing): Incorrect, since the best vendor depends on the job (e.g., Printing, Inc. is cheaper for Zone Map and Agenda Packet).
:
Association of Government Accountants (AGA),Government Financial Manager Certification Study Guide:
Budgeting, Cost Accounting, and Auditing Principles.
Government Finance Officers Association (GFOA),Best Practices in Outsourcing and Procurement.
Federal Accounting Standards Advisory Board (FASAB),Cost Accounting Standards for Governmental Operations.

NEW QUESTION 43
The first step in investment management is to

ensure all employees understand their investment options.

develop a consensus among managers of the investment objectives.

develop an investment policy manual.

establish criteria for divesting.

NEW QUESTION 44
Which of the following acts requires federal agencies to pay interest to state government funds for entitlements that are not provided in a timely manner?

Debt Collection Improvement Act

CFO Act

Accountability for Tax Dollars Act

Cash Management Improvement Act

NEW QUESTION 45
Government entity SEA reporting provides users of general purpose financial reports with an

evaluation of the effects of changes in public policy.

assessment of financial condition and results of operations.

assessment of the accountability of the public administrators.

evaluation of the efficiency and effectiveness of governmental programs.

NEW QUESTION 46
A performance measurement that is measured the same way over several periods is

timely.

relevant.

reliable.

consistent.

NEW QUESTION 47
The first step in the internal control evaluation process is

identifying the effectiveness of management activities.

assessing the adequacy of controls.

documenting how transactions of events are processed.

identifying potential risks.

NEW QUESTION 48
According to OMB Circular A-50, who holds personal responsibility for ensuring that disagreements with audit findings and recommendations are resolved?

comptroller general

OMB deputy director for management

inspector general

audit follow-up official

NEW QUESTION 49
For financial audits, generally accepted auditing standards require that auditors accomplish all of the following tasks EXCEPT

adequately plan the work.

make the audit report available to the public.

obtain sufficient appropriate audit evidence.

supervise any assistants.

NEW QUESTION 50
In relation to financial reporting, who evaluates internal controls to support an opinion on a fair presentation of the financial statements?

management

the independent auditor

the program office

the audit committee

NEW QUESTION 51
A local government is reviewing the performance of a contractor that is collecting trash for the county.
Performance can be measured based upon the cost

per mile travelled.

per ton of trash collected.

comparison with closest comparable jurisdiction.

per employee.

NEW QUESTION 52
Compliance reporting, under government auditing standards, identifies all of the following components EXCEPT

areas of noncompliance.

the auditor’s responsibility for tests of compliance.

review of major internal control cycles.

the scope of the compliance testing.

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AGA GFMC Exam Syllabus Topics:

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